What is a Structured Settlement Annuity?
A Structured Settlement Annuity (SSA) provides tax-free, periodic payments over a period of time, specifically designed to meet an injured party's needs. Specialized consultants facilitate the settlement process, as well as help design and negotiate the structure.
Why choose a Structured Settlement?
Benefits for the injured party:
Features customized design: Payments are specifically tailored to meet the injured party's particular financial needs over a defined period.
Emphasizes stability: Payments are designed to help meet the claimant's current and future financial needs.
Promotes security: Structured settlement provide the dependability of a highly rated financial institution.
Benefits for the defendant:
Leads to faster settlements
May reduce costs
Avoids Jury trials
May allow for tax deduction (self-insured)
A Structured Settlement Annuity (SSA) provides tax-free, periodic payments over a period of time, specifically designed to meet an injured party's needs. Specialized consultants facilitate the settlement process, as well as help design and negotiate the structure.
Why choose a Structured Settlement?
Benefits for the injured party:
Features customized design: Payments are specifically tailored to meet the injured party's particular financial needs over a defined period.
Emphasizes stability: Payments are designed to help meet the claimant's current and future financial needs.
Promotes security: Structured settlement provide the dependability of a highly rated financial institution.
Benefits for the defendant:
Leads to faster settlements
May reduce costs
Avoids Jury trials
May allow for tax deduction (self-insured)
A structured settlement is a negotiated financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving some part of the settlement in the form of periodic payments on an agreed schedule, rather than as a lump sum. As part of the negotiations, a structured settlement can be offered by the defendant or demanded by the plaintiff. Ultimately both parties must agree on the terms of settlement. Structured settlements were first utilized in Canada after a settlement for children affected by Thalidomide.[1] Structured settlements are widely used in product liability or injury cases (such as the birth defects from Thalidomide). A structured settlement can be implemented to reduce legal and other costs by avoiding trial.[2] Structured settlement cases became more popular in the United States during the 1970s as an alternative to lump sum settlements.[3] The increased popularity was due to several rulings by the U.S. Internal Revenue Service (IRS), an increase in personal injury awards, and higher interest rates.
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